8/7/2025
1 RiversideCA.gov1
COMMUNITY & ECONOMICDEVELOPMENT DEPARTMENTCity CouncilAugust 19, 2025Cannabis Testing Laboratory Business Permit Procedure Guidelines and Application Fee RiversideCA.gov2
BACKGROUND
• Commercial Cannabis Business Program adopted by City CouncilMarch 2023 • Retail Guidelines Approved Oct. 2023
• Testing Lab Applicant expresses desire to move forwardJan. 2025 • Testing Lab Guidelines and Application FeePresent1
2 8/7/2025
2 RiversideCA.gov3
PERMITTED BUSINESS TYPESProhibited Business Types:•Commercial Cultivation•MicrobusinessesMaximum NumberBusiness Type14Storefront RetailNo LimitManufacturing/DistributionNo LimitTesting Laboratories RiversideCA.gov4
RMC TITLE 5 REQUIREMENTSCannabis Business PermitBackground ChecksOperational RequirementsSecurity PlanZoning ComplianceState Location Requirements:• K-12 Public/Private Schools• Commercial Daycare Centers• Youth Centers 3 4
8/7/2025
3 RiversideCA.gov5
DEVELOPMENT PROCESSRetail Guidelines as a Baseline•RMC Chapter 5.77•Remove Retail Specific Rules•Add Testing Lab RulesOther cities' processes•10 cities researchedNew Testing Labs Permit Process RiversideCA.gov6
PROPOSED APPLICATION REVIEW PROCESSStep 1 - Application Clearance and Preliminary Approval – 45 Days•Step 1.1: Application Completeness•Step 1.2: Submittal Compliance and BackgroundsStep 2 – Provisional Approval•Step 2.1: Proof of Property Control•Step 2.2: Operational Agreement Step 3 – Final Permit Approval•Agreement approval by City Council•State Licenses•City Business Tax Certificate•Entitlements (if necessary)•Building, Fire, Occupancy Permits 5 6
8/7/2025
4 RiversideCA.gov7
APPLICATION SUBMITTAL REQUIREMENTSApplication Form• Applicant/Owner Information• Location Information• Business Plan• Operations Plan• Safety / Security Plan• Site Details• Owner Live Scan / Background • Defense and Indemnification• Labor, Employment, and Local Sourcing Plan• Laboratory Certification• Application Fees RiversideCA.gov8
STEP 1 – PRELIMINARY APPROVALStep 1.1: Application Clearance• Initial Application Completeness Review• Review of Clearance RequirementsStep 1.2: Compliance Review• Application Documents reviewed for Compliance• Ownership Background Checks7 8 8/7/2025
5 RiversideCA.gov9
STEP 2 – PROVISIONAL APPROVALStep 2.1: Proof of Property Control•Signed Lease or DeedStep 2.2: Operational Agreement•Insurance•Indemnification•Audits•Community Benefit•Labor, Employment Agreement•Local Sourcing Practices RiversideCA.gov10
STEP 3 – FINAL PERMIT APPROVAL•Final Permit Approval shall be granted if the following conditions are met: –City Council Approval of Operational Agreement–State License–City Business Tax Certificate–Entitlements are approved (if needed)–Building, Fire, Occupancy Permits are completed 9 10
8/7/2025
6 RiversideCA.gov11
TESTING LAB APPLICATION FEE
• Establish Application Fee to recover staff time and costs• Approach to Establish Fees• Review and Analyze other city’s fees• Identify staff time and other costsUser Fee Study RiversideCA.gov12
CITY COMPARISONSFee Options:ActivityRiverside Full CostMoreno ValleyCoronaRiverside CountySan BernardinoPomona Pasadena Santa AnaLong BeachPerrisCosta MesaTesting Laboratory Application Fee 7,511.00$ Not Allowed 8,878.00$ 9,646.14$ 15,015.55$ $13,158.00 13,654.00$ 13,500.00$ 5,925.45$ 16,008.45$ 20,380.00$ N/A Flat FeeDepositFlat Fee Flat Fee Flat Fee Flat Fee Flat Fee Flat Fee Annual Fee* Recommended OptionFlat Fee*• Time and Materials • Reduced Admin TimeDeposit• Time/Costs charges against deposit• Requires tracking time and processing refunds11 12 8/7/2025
7 RiversideCA.gov13
FLAT FEE CALCULATIONIdentify Tasks in Permit ProcessCalculate direct costs using hourly ratesDetermine other operational costsDetermine indirect or “overhead” costsProposed Testing Lab Application Fee: $7,511 RiversideCA.gov14
RECOMMENDATIONSStaff recommends that the City Council: 1. Conduct a public hearing on the amendment to the City of Riverside’sFiscal Year 2025/26 Master Fees and Charges Schedule for the addition ofthe Cannabis Testing Laboratory Application Fee;2. Adopt a Resolution to adopt the Testing Laboratory Commercial CannabisBusiness Permit Procedure Guidelines; and3. Adopt a Resolution amending the City’s Fees and Charges Scheduleproviding for a testing laboratory commercial cannabis business permitapplication fee of $7,511.13 14